Development of Ethiopian National Cotton Development Strategy 2015-2030
Objective of the Programme
Private Enterprise Programme Ethiopia (PEPE) is a wealth-creation programme, which aims to stimulate investment in private enterprise in order to create jobs & increase household incomes for the poor. As the country grows towards middle-income status (targeted for 2025), PEPE’s emphasis is to enhance the productivity and competitiveness of three priority Agro-Industrial sectors (Cotton-Textiles-Apparel; Livestock-Leather, and; Horticulture) and to facilitate improvement in the performance of the financial sector. PEPE, critically, works towards a growth that is inclusive of women & the environment.
The Ministry of Industry of the Federal Democratic Republic of Ethiopia, in collaboration with its partners and PEPE, would like to develop a national cotton development strategy and roadmap. The strategy is expected to provide an overall framework that captures the current situation (globally and domestically) and the gaps to be bridged for future prospects, vision, goals, strategies and programs, all to be implemented over 15 years to support Ethiopia becoming a middle-income country by 2025.
Scope of Work
The study will be carried out in two stages: (a) an initial scoping phase; and (b) development of a sustainable cotton development strategy for Ethiopia, including an implementation roadmap (further details below). The assignment, which requires international and national expertise, will be completed by 31 January 2016.
The study should be grounded in the realities of the country’s context and condition, found via a background assessment of primary secondary information combined with expert interviews and analysis. Local consultants should be part of the team to ensure a strong starting point in this regard. Similarly, the analysis should be enriched by incorporating the experiences of other cotton-producing countries (see below) that have successfully developed and implemented cotton development strategies. International experts should be part of the team to ensure these experiences can be applied to the Ethiopian context.
The team will be expected to perform the following tasks under the direct supervision and guidance of the National Steering Committee (NSC), led by the Ministry of Industry:
Step 1: Develop background scoping study. Conduct extensive desk research, field assessment, literature review to develop a comprehensive sector background assessment and scoping study. Incorporate comments and feedback from selected stakeholders and experts via consultations on the scoping study.
Step 2: Draft strategy. On the basis of the above, identify the main strategic issues for Ethiopia’s cotton sector and contextualize relevant international experiences (providing strong backing evidence and literature sources) to guide the NSC’s consideration of them, by providing options and recommendations in advance. Facilitate a discussion of the NSC and incorporate comments and feedback.
The following countries should, at the minimum, be considered in this exercise (with initial rationale in parentheses, consultants should expand and refine from this list):
Africa:
Asia:
Others:
Based on the directions given above, the consultants should draft a comprehensive high-level strategy.
Step 3: Roadmap for implementation. The consultants should develop and get approval for an implementation roadmap for the strategy developed, incorporating timelines, actors/owners and financial considerations.
Step 4: Stakeholder validation workshop. The NSC and consultants should present the draft strategy & implementation roadmap to a wide group of stakeholders taking recommendations and subsequently incorporating them into the document.
Step 5: Finalization. The consultants should secure the approval of the NSC for the strategy and hand-over all files and reports.
The following themes and their contents should be considered for the basis of the scoping report and strategy:
A) Production and productivity GMO: opportunities and experience in other African countries
B) Processing and value addition
• Cotton quality grading (i.e., starting from the field)
• Ginners – type, capacity, employees, location, condition, utilization %, cost of ginning/kg of seed cotton
• Ginning outturn factors (i.e., lint, seed, and waste)
• Price of cotton lint per kg ex-ginnery (based on standard quality/grade)
• Quantity of cotton lint and seed produced in KGs
• Markets for seed cotton, lint and seed (local, EAC Plus, and ROW)
• Estimation of cotton lint surplus/deficit for next 5 years historical statistics until 2015.
• Demand of textile factories
C) Access to market and informatioand VC finance
• Affiliation and participation in appropriate regional & international trade programs and fora (AGOA, EAB, ICAC, ACTIF)
D) Organization
• Cotton producers’ organizations and ginneries capacity to participate in cotton sector institutions and policy formulation
• Information on existing contracting systems, input packages and level of integration along the value chain
• Cotton producers’ response to market signals.
• Requirements of cotton producers to be able to produce more efficiently and adapt to technological innovations.
• Institutional requirements for price risk management.
• Capacity of cotton producers to insure against cotton and other agricultural related risks, and their needs for safety nets.
• Organization (public, private) of the provision of essential producer services (inputs, credit, seeds, research, extension, technical support, capacity building).
E) Policy and Regulation
• Assessment of existing key Cotton institutions, Cotton Fund and regulatory frame work
• Investment promotion and incentives (domestic & FDI)
• Benchmarking
• Policy research, development & communication
• Contract farming policy frameworks development
• Biotechnology
• Standard Enforcement
• Trade Licensing
• Regional states’ cotton policy and harmonisation with national cotton strategy
• PPP on Cotton (all stakeholders represented)
• Sector policy development against the backdrop of growing market demand for a sustainable textile chain of custody.
F) Social impact Environmental compliance
• Understand the extent of social and environmental impact and the areas most affected,
• Gain insights into the existing and potential threats related to the social and environmental impacts areas,
• Understand how to address these impacts in the design and implementation of sustainable cotton projects.
• Advocacy & lobbying (carbon fund & green energy, farmer rights, NWG trade policy)
• Assess and Validate sustainability requirements and trends on major export markets
Outcomes
The study should aim to achieve, at the minimum, the following outcomes:
• Analysis on the comparative advantages and prospects of international and domestic markets for Ethiopian cotton
• The role of cotton as a strategic industrial crop in national development strategies
• Economies of scale in different parts of the marketing chain and the need to regulate entry under a liberalized environment.
• Feasible pricing systems and risk bearing along the cotton chain including payment systems for cotton producers.
• Required institutional arrangements to best combine technical support, capacity building, input provision with credit, output marketing services.
• Types of institutions that can best drive the highly anticipated cotton sector development and facilitate access to productive inputs and essential producer services (research, extension, irrigation, credit/Banking, capacity building/Education, etc.)
• Efficient systems for hedging cotton system risks, and risk sharing along cotton value chain.
• Recommendations for stabilization funds and market based commodity risk management.
• Legal systems and institutions for enforcement of laws and agreements
• Required technological innovation and adaptation
• Required vertical diversification, integration and value addition
• Key investment opportunities in the cotton sector (FDI, regional, local).
• Required rules and incentives for foreign direct investment and domestic investors
• Capacity building required at federal and regional level to undertake policy analysis and evaluation of options.
• Capacity building at producer association level to organize and participate in policy dialogue.
• Partnerships between national and international institutions and technical experts from academia, trade and industry on provision of technical support and capacity building.
• Develop and recommend social and environmental compliance codes and strategies to guide investments in (large‐scale) cotton production in Ethiopia.
• Other critical requirements towards developing a competitive cotton sector, which can serve as a basis for competitive cotton and textile value chain.
• Propose infrastructure requirement (road; irrigation, education system
• Forecast the investment plan
• Interim targets for 2025, when the country reaches middle-income status.
Deliverables
• Inception Report
• Brief Monthly Progress Reports
• Comprehensive Ethiopian cotton sector scoping report on all thematic areas.
• Draft Sustainable Cotton development Strategy for Ethiopia
• Draft Implementation roadmap with implementation roadmap
• Two large stakeholder validation workshops and two small expert/stakeholder consultation meetings
• Final strategy document, incorporating final implementation roadmap
Expertise Required
All reports to be in MS Word Format and presentations in MS PowerPoint in English language. They should be submitted electronically via CD and in paper (3 copies). Monthly progress reports may be submitted by email and not in hard copy or on CD. All field visits and discussion with the respective stakeholders to be well documented and be part of the final report.
The consultants should have a mix of expertise with the following areas:
Agronomy; irrigation and water resource management; agricultural engineering, agricultural economics, cotton markets and marketing, environmental issues, processing/manufacturing, policy research, data analysis and research (incl. statistical analysis).
The team should be led by a team leader with a minimum of 20 years’ experience. All experts should have a minimum of 10 years of experience. They should also have experience developing government strategies as well as working with the private sector. Facilitation skills are also important.
Programme Duration: September 2015 – 31st January 2016
Timing:
Proposals received: August 14, 2015
Bidder contracted: August 28, 2015
Team mobilized: September 7, 2015
Inception report: September 21, 2015
Step 1: scoping study: October 31, 2015
Step 2: strategy draft: November 30, 2015
Steps 3: roadmap: December 31, 2015
Step 4: validation workshops: January 2016
Step 5: final strategy document: January 31, 2016
Application Deadline:
14th August 2015
Application:
The Ministry of Industry invites eligible organisations to submit proposals to carry out this work to the Private Enterprise Programme Ethiopia (PEPE).
Interested organisations may obtain the detailed terms of reference for this work by contacting cottonstrategyethiopia@pepeteam.org
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